Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1887-12-07
THE ISSUE AT THE FRONT,
AS FORMULATED BY THE PRESIDENT
IN HIS MESSAGE.
A Document Whose Brevity Is Ex-
planned by Its Discussion Of
but One Question.
An Earnest Appeal for the Reduction of Gus
toms Taxation and Const quentiy the
Treasury Surplus, with an Argu-
meDt ON Its Prscticability.

Treasury to Relieve the Monetary Situation
Described-The Reformers Delighted with
the Document, Randall Retieent, and the
Republicans Content Specimen Comments
from Various Sources.
WASHINGTON CITY. Dec THE presidents
message, the text OF which is given below, was
sent to congress and read to the two houses
Tuesday. 1t presents the unique feature of be
Ing devoted entirely TO the State OF the Union
considered with reference TO the surplus in the
treasury and the operations OF the present tariff
laws, aud an earnest argument to establish tbs
proposition that revision of those laws provid-
Ing reduction Of customs duties and thereby
the prevention of the surplus is the pressing sub
iect for legislation at this time.
To THE CoNGRRss OF THE UNITED STATES;
You are confronted at the Threshold of your
legislative duties with u condition Of the ma
tonal finances which imperatively demands
immediate and careful consideration. The
amount of money annually received through the
operation of present laws. from the industries
and necessities of the people, largely exceeds
the sum necessary TO meet the expenses OF the
government. When We consider that the theory
of our institutions guarantees to every citizen
the full endowment OF the fruits OF his industry
and enterprises, with only such deduction as
may be his share toward the careful and eco
nomical maintenance of the government which
protects him. il is plain that the exectiou of
more than this is indefensible and a culpable
betrayal of fairness and justice. This wrong in
hicted upon those who bear the burden OF ma
tional taxation, like other wrongs, multiphes a
brood of evil consequences. The public treas
ury, which should only exist a conduit
yeying the peoples tribute 70 its legitimate OBJ
iects OF expenditure, becomes a boarding place
for money needlessly withdrawn from trade and
the peoples use thus GRIPPING our national en-
srgies, usurping our country's development, pre-
venting Investment in productive enterprises,
threatening financial disturbance, and inviting
schemes OF public plumber
This condition OF our treasury is not altogether
new and it has more than once of late been sub
mitted 10 the peoples representatives in con-
gress, WHO alone can apply remedy. And yet
the situation still continues with aggravated in
cidents, more than ever presaging financial con-
vulsions and widespread disaster 1t will not
do to neglect this situation because its dangers
are not now palpably imminent and apparent.
They exist none the less certainly and the unfore
seen and unexpected occasion may come when
suddenly they will be precipitated upon US.
On the SOth day OF June, 1885, the excess Of
revenue over public expenditure after complying
with the annual requirement of the sinking fund
act, was Sl7 SO. 135. 81 during the year ended
June 80, 1885, such excess amounted to s49, 49,
$3.50 and during the wear ended June 80, 1885,
1t reached the sum of s55, ST. s49.54. The annual
contributions to the sinking-fund during the
three years above specified, amounting In the
aggregate to slSs, 05S 39O.94, and deducting from
the surplus as stated were made by calling in for
that purpose outstanding per cent bonds
of the government During the six months prior
to June 80, 1881 the surplus revenue had grown
SO large by repeated Accommodations, and it was
feared the withdrawal OF this great sum OF money
needed by the people. would SO affect the bust
ness OF the country that the sum of
S79.S54,lO0 of such surplus was applied to the
payment OF the principal and interest OF the
3 per cent bonds still outstanding and which
were then payable at the option of the govern
ment. The precarious condition of financial az
fairs among the people still needed relief. Imme-
diately after the S0th day of June 1857, the re-
mainder of the per cent bonds thus outstand.
ing amounting, with principal and interest, to
/ the sum Of SIS ST. 500. were called in and ap-
Piled to the sinking fund contribution for the
| current fiscal year. Notwithstanding these oper-
atoms OF the treasury department, representa-
lions of distress in business circles not only con.
\ tnued but increased, and absolute peril seemed
| at hand In these Giro umstances the contribu.
ton to the sinking fund for the current fisca
| year was at once completed by the expenditure
of S27 ,osi, 2s35 30 in the purchase of government
! bonds not yet due bearing and Az per cent in
terest the premium paid thereon averaging about
"A per cent for the former and per ceLt, for the
| latter. In addition to this the interest accrung
! during the current year upon the outstanding
! bonded Indebtedness OF the government WAS to
some extent anticipated and banks selected al
| repositories of public money were permitted t
1 somewhat increase their deposits.
| While the expedients thus employed, to re
lease to the people the money lying in the treas
| ury, served TO avert immediate danger, our sur
| Plus revenues nave continued 10 accumulate fns
excess for the present year amounting on the Isl
day of December to s55 25S ST. 10 and estimated Il
reach the sum Of $ll3 600 900 on the 3Oth Of Jun,
next, at which date it is expected that this sum
added 70 prior accommodations, will swell the sur
plus in the treasury 70 Sl40 0000O0.
There seems to be no assurance that with sucl
3 withdrawal from use Of the peoples circuiat
ing medium our business community may not il
the near future be subjected to the same distres
which was quite lately produced from the sam
cause. And while the functions of our nationa
treasury should be few and simple, and Will,
the best condition would be reached, l believe b,
its entire diseonnection with the private business
interests, yet when, by perversion OF its pur
poses it idly holds money uselessly substractet
rom the channels OF trade, there seems to be rea
sons for the claims that legitimate means SHOULD
be devised by the government to restore in a,
emergency, without waste or ex travagance, sucl
money TO Its place among the people.
II such an emergency arises there now exist
no clear and undoubted executive power of re
lief. Heretofore the redemption of the De
cents only, which were payable at the option o
the government, has afforded means for tn,
disbursement OF the excess of our revenues bu
these bonds have all been retired, and there ar
no bonds outstanding, the payment OF which W,
have the right TO insist upon. The contribution
70 the sinking fund, which furnishes the occa
sion for expenditures in the purchase of bonds
has been already made for the current year g.
there is no outlet in that direction.
In the present state of legislation the onl
pretsnse of any existing executive power to re
store, at this time, any part OF our surplus rsve
nues to the people by its expenditure, consist
In the superstition that the secretary of tn
treasury may enter the market and purchase tn
bonds of the government not yet due, at rat
Of premium to be agreed upon.
The only provision of law from which such
power could be derived is found in an ap
preparation bill passed q number of years ago
and 1t is subject TO the suppostion that it wa
! intended as temporary and limited in its ap
pication instead of comforting a continuing dis
! erection and authority. No condition ought +
exist which would justify the grant OF power t
single official upon his iudgment.o its necessi
ty. to withhold from or release to the business 0
the people in an unusual manner money held il
the treasury, and thus affect at his will tn
financial situation of the country; and If it Ii
deemed wise to lodge in the secretary OF tn,
treasury the authority in the present juncture Il
purchase bonds, 1t should be plainly vested, an
provided as far as possible with such check
and limitations as will define his official RICH
and discretion and at the same time relieve biz
| from undue responsibility,
In considering the question of PURCHASING
bonds a means of restoring tn circulation tn
surplus money accommodating in the treasL4 y,
should be borne in mind that premiums mus
of course be paid upon such purchase that ther
may BE- a large part of these bonds held as in
vestments which can not be purchased at an
price and that combinations among holders VIII
are willing to sell, may unreasonably enhanc
the cost OF such bonds to the government
It has been suggested that the present bonde
debt might be refunded at a less rate of interes
and the difference between the old and new 81
curities paid in cash, thus finding use for tn
surplus in the treasury. The success Of thi
plan, 1t is apparent must be founded upon tn
volition OF the holders OF the present bonds; an
, 1t Ia not entirely certain that the inducemer
which must be offered them would result
more financial benefit to the governmer
than the purchase of bonds, while til
latter proposition would reduce the prir
cipal OF the debt by actual payment instes
Of extending it. The proposition to deposit th
money held by the government in bank
throughout the country, for use by the people
10, 1t seems to me, an exceedingly objectionab
principle as reaching too close a relationship b
tween the operations of the government TO ii
business OF the country and too extensive q cor
mingling OF their money, thus fostering an nj
natural reliance In private business upon publ
funds. II this scheme should be adopted
should be done as q temporary expedient TO me
an urgent necessity. Legislative and executi'
effort should generally be in the opposite dire
ton and should have tendency to divorce,
much and as fast as can be done the treasul
department FROM private enterprises. OF cou
| tits not expected that unnecessary and extravl
giant appropriations will be made 4
ton OF an excess of revenue SUE
| expenditure, besides the decentralization
all Just conceptions OF public duty which it e.
tails, emulates a reckless improvidence not
the least consistent with the mission Of our pc
pie or the high and benehcent purposes Of OF
government.
l have deemed 1t my duty thus to bring to Il
knowledge of my countrymen, well as Il
attention Of their Representatives to the respol
sibility of Legislative relief, the gravity Of Oh
financial situation The failure of the congrei
heretofore to provide against the danger whiC
1t was quite evident the very nature of the di
fculty must necessarily produce. caused a conc
ton Of financial distress and apprehension SIM
their last adjournment which taxed to the u
most all the authority and expedients within e.
ecutive control and these appear now to be g.